554.3602 Payment. 1. Subject to subsection 2, an instrument is paid to the extent payment is made by or on behalf of a party obliged to pay the instrument, and to a person entitled to enforce theinstrument. To the extent of the payment, the obligation of the party obliged to pay theinstrument is discharged even though payment is made with knowledge of a claim to theinstrument under section 554.3306 by another person. 2. The obligation of a party to pay the instrument is not discharged under subsection 1 if:a. a claim to the instrument under section 554.3306 is enforceable against the party receiving payment and payment is made with knowledge by the payor that payment isprohibited by injunction or similar process of a court of competent jurisdiction, or in the caseof an instrument other than a cashier’s check, teller’s check, or certified check, the partymaking payment accepted, from the person having a claim to the instrument, indemnityagainst loss resulting from refusal to pay the person entitled to enforce the instrument; or b. the person making payment knows that the instrument is a stolen instrument and pays a person it knows is in wrongful possession of the instrument. the person entitled to enforce the instrument; or b. the person making payment knows that the instrument is a stolen instrument and pays a person it knows is in wrongful possession of the instrument. 94 Acts, ch 1167, §74, 121, 122; 2013 Acts, ch 30, §261Referred to in §554.3103 Sat Dec 23 01:57:09 2023 Iowa Code 2024, Section 554.3602 (25, 0)
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